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The Department reviewed all the documents the original complainant submitted or <br /> referred to, but based on the information available, including witness testimonies, it is not clear <br /> that Mr. Snook wrongly diverted funds from EVB. <br /> ULTIMATE FINDING: <br /> Sufficient evidence does not exist to file a claim against Scott Snook, nor is it in the <br /> public's best interest to expend additional Department resources to continue this investigation. <br /> RECOMMENATION: <br /> Close case without further action. <br /> DETAIL: <br /> This investigation was opened on November 20, 2001 based on information provided by <br /> the original complainant. The complainant alleged that EVB's governing structure violated <br /> Oregon law in that the bylaws were suspended and all authority to operate EVB rested with Scott <br /> Snook, the Track Operator. The investigation involved interviews with additional complainants, <br /> witnesses, Scott and Candy Snook, and a review of administrative and financial documents. <br /> Among the documents reviewed were the EVB bylaws, bank documents, internal financial <br /> statements, receipts and limited documents of an administrative nature. <br /> The investigation revealed that in October 1996, the bylaws of EVB were suspended, the <br /> board ceased any meaningful function and Scott Snook assumed control of track operations <br /> without any oversight. Mr. Snook agreed to enter into a contract with EVB to be Track Operator <br /> on the conditions that the bylaws be suspended and meetings would be cancelled. Mr. Snook <br /> and his wife Candy had complete control over EVB funds. The Snooks did not keep adequate <br /> books and records in that they were incomplete and disorganized and there is no clearly <br /> discernable audit trail for many transactions. The financial document review revealed that the <br /> Snooks consistently co- mingled EVB funds with their personal business, R & C Racing. <br /> According to the contract that Mr. Snook signed with EVB, any increase of funds over the funds <br /> available at the start of the contract will be claimed by Management as Mr. and Mrs. Snook's <br /> salary. <br /> Presumably under the pressures of this audit, Mr. Snook resigned in early March 2002. <br /> Following the departure of Scott Snook, EVB reinstated their bylaws and elected new board <br /> members. The Department provided a letter to EVB, dated April 10, 2002, outlining suggestions <br /> and recommendations for them to reinstate a proper governing structure. Through additional <br /> correspondence, the Department suggested that EVB should contact legal counsel and explore <br /> options of holding the Snooks accountable for unsupported reimbursement expenses. Due to <br /> other office priorities, the Department did not press EVB for a response. <br /> Final Investigative Report 3 of 7 CAS09342.DOC <br />